LONDON, November 25 /PRNewswire/ --

Mobile advertising could become a strong source of revenues for the mobile industry. The European mobile industry has extensively explored the use of advertising recently as a sustainable business model for mobile content, mobile messaging and other services. Despite being in the initial stage, these models have galvanised the industry. The level of confidence of the mobile communications and advertising industries in the potential of mobile advertising is very high.

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New analysis from Frost Sullivan (http://www.wireless.frost.com), Ad-based Content and Communications: A Lucrative Avenue for the Mobile Industry, estimates that the mobile social and content advertising market revenues should reach euro 2.18 billion in 2012 in Europe. Mobile content advertising, ad-based music, video, TV and games will represent the major source of revenues.

To achieve high revenues, the mobile advertising industry will need to successfully confront three main challenges. What should be concentrated on is: continuously enhance the mobile user experience through high-speed connectivity and high-quality user interfaces; use ads as a transparent value to consumers' mobile experience without being intrusive; and educate the advertising industry on how to exploit the advertising power of mobile devices, notes Saverio Romeo, Frost Sullivan Research Analyst. If these challenges are not adequately faced, the advertising market will not grow strongly as the mobile industry expects.

From the mobile industry point of view, advertising is a potential revenue stream that can counterbalance the continuous decrease of revenues from voice and SMS services. However, advertisers and agencies, the sources of the advertising revenue stream, are, only now, gradually learning the use of the mobile device as an advertising medium.

Agencies' budgets rarely include a specific allocation for mobile communications, states Romeo. An intense synergy between the mobile and the advertising industries is crucial to transform today's enthusiasm into strong revenues in the future.

Ad-based Content and Communications: A Lucrative Avenue for the Mobile Industry is part of the Mobile Wireless Growth Partnership Services Programme, which also includes research in the following markets: European Mobile Premium Content Markets, Mobile Messaging Markets in Europe and Exploring the European Market for Mobile Smart Devices. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the ad-based content and communications market for the mobile industry, please send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Frost Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership(TM) empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost Sullivan's Growth Partnership Services, visit http://www.frost.com.

Ad-based Content and Communications: A Lucrative Avenue for the Mobile Industry M2AD-65 Contact: Joanna Lewandowska Corporate Communications - Europe P: +48-22-390-41-46 E: joanna.lewandowska@frost.com

Joanna Lewandowska, Corporate Communications - Europe of Frost Sullivan, +48-22-390-41-46, joanna.lewandowska@frost.com. Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO